YOCREAM International, Inc. Operating Income up 138 Percent on 43 Percent Higher Sales for Fiscal 1999
Net Income Surges 45 Percent
PORTLAND, Ore., Jan. 25 /PRNewswire/ -- YOCREAM International, Inc. (Nasdaq: YOCM), a manufacturer and wholesaler of frozen desserts and smoothies, posted record sales and earnings for the fiscal year and fourth quarter ended October 31, 1999. For the year, sales rose 43 percent to $14.6 million from $10.2 million in fiscal 1998.
Higher sales and lower expenses as a percentage of sales fueled a 138 percent gain in operating income to $1.5 million from $616,000 a year ago. Net income of $1.0 million, or $.43 per diluted share, improved 45 percent from $702,700, or $.30 per diluted share, in the prior year.
Contributing to the record year was a strong fourth quarter -- the sixth consecutive quarter of sales growth for YOCREAM International. Sales of $3.9 million in the three months ended October 31, 1999 improved 26 percent from $3.1 million in the 1998 same quarter. Operating income jumped 139 percent in the period to $364,600 from $152,400 as gross margins increased approximately 1 percent and expenses, as a percentage of sales, declined 3 percent. Net income of $265,500 was 31 percent higher than $203,200 in the comparable 1998 quarter. On a per share basis, earnings were up 38 percent to $0.11 per diluted share compared to $0.08 in the prior year.
"It was a tremendous year on all fronts," said Douglas Caudell, chief financial officer of YOCREAM. "Our earnings growth was especially strong in light of the fact that the full year results included a $406,000 provision for income taxes while the prior year results were aided by a $200,000 tax benefit."
Sales gains in each quarter of fiscal 1999 came from an escalating demand for YOCREAM's smoothie products and increased penetration in the soft-serve frozen yogurt market. "During the year, we entered new markets such as the convenience store segment. Furthermore, longtime customers like Costco expanded use of our products at new locations."
"We anticipate that sales growth will continue into the year ahead," said Caudell. "We have a strong franchise in the wholesale market with our smoothie and soft-serve frozen yogurt products. In addition, we supply customers with growing national and international operations and plan to pursue retail market expansion of the bottled smoothie product introduced in 1999."
Cash flow, as defined by earnings before interest, taxes, depreciation and amortization (EBITDA), was $1.8 million for the 1999 fiscal year compared to $923,000 in 1998 -- an increase of 99% percent. Caudell noted that, while a tax provision was recorded in fiscal 1999, the company had the benefit of a net operating loss carry-forward, substantially eliminating the need for tax payments.
"As a result of the improved cash flow, we paid down $782,800 on our line of credit and had no balance at year end. We also reduced our debt to equity ratio to .37 to 1 compared with .47 to 1 at the end of 1998. Consequently, YOCREAM's balance sheet was significantly improved during fiscal 1999, positioning the company for future growth," Caudell said.
YOCREAM International, Inc. makes, markets and sells frozen desserts, snacks and smoothies throughout the United States and in several foreign countries. It sells primarily to food distributors and wholesale clubs; and the company's products are available in restaurants, convenience stores, schools, hospitals, corporate cafeterias and wholesale clubs.
This release may contain certain forward-looking statements, which are based on management's current expectations. Factors that could cause future results to vary materially from these expectations include, but are not limited to, change in distribution abilities, level of customer acceptance of new products, change in co-packing relationships and strategic alliances, and other economic, competitive, governmental, regulatory and factors affecting the company's operations, pricing, products and service. For a more complete discussion of the risks associated with forward-looking information, refer to the Risk Factors contained in the company's Form 10-K filed with the Securities and Exchange Commission on January 28, 2000.
YOCREAM International, Inc.
Income Statement
Three Months Ended Twelve Months Ended
October 31, October 31,
1999 1998 1999 1998
Sales $3,953,823 $3,128,408 $14,628,967 $10,206,524
Cost of sales 2,817,337 2,259,786 10,183,947 7,125,487
Gross profit 1,136,486 868,622 4,445,020 3,081,037
Selling, general
and administrative
expenses 771,848 716,252 2,976,575 2,464,958
Income from
operations 364,638 152,370 1,468,445 616,079
Other income
(expenses) 13,649 (24,142) (44,379) (113,376)
Income before taxes 378,287 128,228 1,424,066 502,703
Income tax (provision)
benefit (112,800) 75,000 (406,000) 200,000
Net income $265,487 $203,228 $1,018,066 $702,703
Earnings per common
share
Basic $0.11 $0.09 $0.44 $0.31
Diluted $0.11 $0.08 $0.43 $0.30
Shares used in per
share calculation
Basic 2,309,343 2,333,984 2,314,861 2,292,375
Diluted 2,360,249 2,403,038 2,371,351 2,358,668
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SOURCE: YOCREAM International, Inc.
CONTACT: Terry Lusetti, 503-256-3754, or Dolores Chenoweth, Investor Relations, 503-469-0338, both of In.ves'com |
